Latest News | NCLAT Directs No Further Steps in Insolvency Case Against Santasha Real Estate

New Delhi, Apr 25 (PTI) Appellate tribunal NCLAT has directed not to take any "further steps" in pursuance with an order passed by the National Company Law Tribunal directing to initiate insolvency proceedings against realty firm Santasha Real Estate.

The New Delhi bench of the National Company Law Tribunal (NCLT) had on March 29, 2022 ordered for initiation of insolvency proceedings against the realty firm over a plea filed by Vani Advertising, an operational creditor to the company, claiming default.

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This order was challenged by Santasha Real Estate before the appellate tribunal NCLAT (National Company Law Appellate Tribunal) contending that NCLT proceeded ex parte against the company and reserved its order on March 14, 2022.

Santasha had also filed an application for a recall of the said order, but NCLT rejected it on March 28, 2022 and the next day passed an order to initiate insolvency proceedings against the company.

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On Santasha's plea, a three-member NCLAT bench issued a notice and said its "submissions need scrutiny".

"In the meantime, no further steps shall be taken in pursuance of the order dated March 29, 2022," said the NCLAT bench headed by Justice Chairperson Ashok Bhushan on April 21.

Vani Advertising had claimed a default of Rs 40.77 lakh.

Admitting its plea, NCLT had appointed an interim resolution professional after suspending the board of the real estate firm.

Vani Advertising had submitted that Rs 40.77 lakh was due on the real estate firm in lieu of the advertising services provided by it.

The advertising company had completed the work within the stipulated time frame as per the contract. However, the payment was not made in time and remains pending, as per the plea.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)